If the interest rate is 9 percent, to get back $800 in one year you would need to deposit ________ today.
A. $720.72.
B. $714.29.
C. $733.95.
D. $791.00.
Answer: C
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Describe the main difference between the core inflation rate and the PCE inflation rate
What will be an ideal response?
The supply of any good is likely to be inelastic when
A) consumers have few good substitutes for it. B) it is a manufactured good rather than an agricultural good. C) it can be produced at low cost. D) there are very many producers of the good. E) very little time elapses between the change in price and the change in quantity supplied.
In November, 2012, U.S. lawmakers were faced with a "fiscal cliff:" if they did not agree on how to reduce the federal deficit, automatic tax increases and drastic cuts in government spending would take effect
What would happen if the fiscal cliff occurred? A) The aggregate demand curve shifts leftward, the price level falls and real GDP decreases. B) The aggregate demand curve shifts rightward, the price level rises and real GDP increases. C) The short run aggregate supply curve shift leftward, the price level rises and real GDP decreases. D) The short run aggregate supply curve shifts rightward, the price level falls and real GDP increases.
The substitution effect
A) is always larger than the price effect. B) always decreases purchases of a good as the price of a good rises. C) increases purchases of the good as the price rises if the good is a normal good. D) is always smaller than the income effect.